The auditor’s report has been criticised for being uninformative at least since the late nineteenth century. Despite persistent requests for detailed information in order to facilitate users’ decision-making processes, auditors have only recently started to provide entity-specific information in their reports. Against this background, two research questions are raised: (1) What were the driving forces behind the evolution of the auditor’s report? (2) How can dissatisfaction with and misperceptions of audit reporting be reduced in order to support financial statement users’ decision-making processes? As the object of study, the Swedish auditor’s report is chosen since it has, up to the present day, deviated from reports in other jurisdictions and thus enables an extension of knowledge in the field of audit reporting. The first part of this dissertation contributes to previous auditing history and auditing profession research by answering the first research question through an analysis of approximately 1,800 historical Swedish auditor’s reports and numerous related documents. Applying a critical-theory perspective, the research findings suggest that during the course of history, auditors were able to adopt an auditor’s rather than a user’s perspective despite arguing in the interest of users. The second part of the dissertation contributes to previous audit reporting and expectation gap research by answering the second research question through a vignette experiment with Swedish financial statement users. The research findings indicate that dissatisfaction with the current auditor’s report can be reduced through additional entity-specific information concerning the auditor’s independence, the audit process and the audit findings, and less general information about the auditor’s responsibilities. Overall, this dissertation connects past events concerning the auditor’s report to current challenges and indicates possible future developments. / The auditor’s report is the financial auditor’s primary means of communication with users of financial statements. It has been criticised for being an uninformative document at least since the late nineteenth century. Persistent requests for change in order to facilitate users’ decision-making processes include detailed information about the audited financial statements, the conducted audits and the auditors. Despite these requests, auditors have only recently started to provide some entity-specific information in their reports. This dissertation contributes to the topical issue of audit reporting in relation to users’ needs through two studies. The first study retraces the historical evolution of the auditor’s report in order to explain the driving forces behind this evolution and the reasons why users have had to accept uninformative reports for such a long time. The second study examines ways to reduce dissatisfaction with and misperceptions of audit reporting and evaluates the current auditor’s report with regard to financial statement users’ decision-making processes. Overall, the findings of this dissertation cast doubt on the past and current willingness of auditors to deliver reports that are aligned with users’ needs to make informed decisions.

The auditing profession is a popular career choice among business graduates, and the Big N firms hire large cohorts of audit assistants every year. The auditing profession is special in the way that it has a defined career ladder, as well as a high employee turnover rate. The hiring process involves contact both with the HR department and auditors from the operating business. Since the audit assistants are not expected to have great technical knowledge at the beginning of their employment, other things than the actual auditing skills must be tested during the hiring process.   In prior research, studies have been conducted from the perspective of the applicant, rather than the organizational perspective. There has been relatively little research on the recruitment of auditors, and most research has been conducted in another context than a Swedish one. The research question used for this thesis is: How do audit firms hire entry-level audit assistants, and what profile is desired by the HR department and the operating business?   The main purposes of this study are to explore the hiring process and what profile is desired, from both the HR department’s perspective and the operating business’ perspective. The study is qualitative, and the data was collected through semi-structured interviews with delegates from the largest audit firms in Sweden. The sample consisted of eleven informants including seven auditors and four recruiters.  The empirical findings suggest that the Big N firms in Sweden hire through a centralized HR-department, with a standardized process that is similar among all the firms. A lot of responsibility lies with the HR-department, but the auditors make the final determination if the applicant will fit into the group. The most important characteristics desired of an audit assistant are found to be social skills, team ability, and dedication, and these are assessed at the different steps of the hiring process. Finally, the findings suggest that the HR department and the delegates from the operating business of the HR firms agree on what profile they are looking for, however, there is no formal way of evaluating the hiring process in any of the firms. The contributions of this thesis can be of use for various actors, for example audit firms when developing their hiring strategies, regulatory authorities when discussing the development of the industry and educational bodies and students when preparing for a career within auditing. From an academic perspective, this study can be used as a point of departure for future research.

Digitalization is a fast paced phenomenon that is recognised to be of importance for the auditing profession’s future. This study has, through an innovative approach, gathered the ideas and perspectives on the perceived future role of digitalization in relation to the auditing profession. In order to ensure that these ideas and perspectives were to be practically relevant, 14 Swedish auditors were interviewed. This study was initiated through an evident need of research about the future role of digitalization, as this role is recognized as important but rather under-theorized according to both practitioners and academics.   In order to tackle the need for research within the relatively unexplored area of digitalization in relation to the auditing profession, a dialogue with practitioners led to the creation of the following research question:    -How do auditors expect digitalization to shape the future of the auditing profession?   In order to accurately answer the constructed research question, three sub-questions were established:   - How do auditors perceive past and current changes of the auditing profession? - How do auditors perceive futures changes of the auditing profession? - How do auditors perceive the future role of digitalization?   The underlying purpose of this study was to push for a unification between the academic and practice community. To achieve this, a follow-up sub-question was generated:   - How do auditors perceive the role of academic research to shape the future of the auditing profession?   And inductive research approach was adopted for this study, in line with the epistemological standpoint of interpretivism and a constructionism ontological approach. Furthermore, this thesis was a conducted qualitative exploratory research that employed semi-structured interviews. The research strategy of this study was a combination of narrative inquiry with grounded theory in order to collect data and to generate theories for building knowledge.   The results from the interviews with the auditors generated findings that were used to answer our four sub-questions, and therefore subsequently our main research question. It was concluded that academic research was not directly used by practitioners, since it was not found usable from a practical perspective. Furthermore, it was concluded through applying change theories that digitalization is, by auditors, expected to play an important role in the future of their profession and a list of driving forces was established. Moreover, discussions on how the auditing profession and digitalization will interact in the future are disclosed in this study.

I dagens samhälle finns det ett stort antal olika redovisningsstandarder och regelverk som företag måste förhålla sig till. Revisorerna granskar redovisningen för att se till att den upprätthåller den kvalitet som krävs för att den ska ge en rättvisande bild av företaget. Revisorerna ökar trovärdigheten på företags redovisning genom att granska årsredovisningar och den löpande förvaltningen. Det är Revisorsinspektionen (RI) som har som uppgift att granska de svenska revisorerna och ingripa mot revisorer som agerar oredligt. För att möjliggöra fortsatt utveckling av revisionsyrket måste de grundläggande orsakerna till revisionsmisslyckanden identifieras och revisionskvaliteten måste oavbrutet prövas. Syftet med studien är att analysera och granska samtliga disciplinärenden från RI som resulterat i en disciplinär åtgärd för en revisor. Studien ämnar vidare att identifiera de främsta orsakerna till revisionsmisslyckanden, samt att urskilja hur felaktigheterna skiljer sig åt mellan professionsfelaktigheter och processfelaktigheter. Undersökningen genomförs med hjälp av en induktiv innehållsanalys av samtliga disciplinärenden utfärdade av RI under tidsperioden 2016-2022. Studien analyserade totalt 234 olika ärenden med sammanlagt 959 antal felaktigheter. Studien kategoriserar datamaterialet och delar upp revisionsmisslyckanden i två olika huvudgrupper: processfelaktigheter och proffessionsfelaktigheter. Studien identifierade sex olika kategorier tillhörande revisionsprocessen och två kategorier hänförda till revisionsprofessionen. Av de totala felaktigheterna studien identifierade klassificerades 87 procent som processfelaktigheter. Undersökningen påvisar att den vanligaste orsaken till revisionsmisslyckanden är olika typer av granskningsfelaktigheter / Today’s society posits a great number of different accounting standards and regulations that companies need to adhere to. Financial statements are under scrutiny by auditors to ensure that it maintains sufficient quality that it accurately depicts the enterprise. Having auditors overseeing the company's accounts increases the company’s credibility. In Sweden auditors are overlooked by the Swedish Inspectorate of Auditors (SIA), whose purpose is to maintain audit quality, mainly by supervising and examining Swedish auditors. To ensure that audit as a profession continues to develop, audit failures need to be identified, and the auditors who make errors have to undertake disciplinary actions. The purpose of this study is to analyze and examine all disciplinary cases that have been reported from the SIA that have resulted in a disciplinary action. Furthermore, the study aims to identify the most common causes for audit failure, as well as discern how errors differ between professional misconduct and procedural errors. The survey was conducted with an inductive approach, examining all disciplinary cases issued by the SIA during the period 2016-2022. In total, 234 different cases were examined, with a sum of 959 different errors. The data was categorized into two main categories: procedural errors and professional misconduct. The study presents six different categories adhering to audit procedure, and two categories adhering to the audit profession. Out of all the errors identified by the study, 87 percent were classified as procedural errors. The most frequently identified error made by Swedish auditors were different types of examining errors.

Thesis (LLM (Mercantile Law))--University of Stellenbosch, 2009. / The worldwide increase of corporate failures on the scale of Enron and WorldCom has sparked a renewed international trend of corporate governance review. With the external company auditor blamed at least in part for many corporate failures, corporate governance reform also necessitates a review of the statutory regulation of the company auditor. In particular, the lack of auditor independence when auditing clients has been under the legislator’s spotlight. The problems associated with unregulated or poorly regulated auditors are well illustrated by the activities of auditing giant Arthur Andersen. In the US, the Sarbanes-Oxley Act has been promulgated in reaction to corporate failures, imposing many new legislative restrictions on the auditor. The UK has a more tempered, selfregulatory approach. South Africa, following international trends with its recently promulgated Auditing Profession Act and Corporate Laws Amendment Act, has also greatly increased the regulation of auditor independence. The question is now whether these new restrictions in the wake of corporate failures have been the right approach with which to prevent future failures and to provide adequate protection to shareholders. Although the general legislative increase in auditor awareness is welcomed, the efficacy of several provisions in South African legislation can be questioned. Widespread reform has taken place in the appointment and remuneration of the auditor, which now has to be independently determined by the audit committee. In particular, South Africa’s new regulation of non-audit services, and the lack of refined regulation on compulsory auditor rotation as well as the cross-employment of auditors by clients, needs a critical discussion. It is submitted that the discretion of a well-regulated audit committee, combined with increased disclosure and transparency, should be enough to regulate most of the key aspects of auditor independence. Care should be taken to not overlegislate in haste to reform. South Africa needs a flexible and customised approach in this regard.

The aim of this study was to determine to what degree the nature, extent and effectiveness of the practical training and experience trainee auditors obtain during the practical training period (articles of clerkship) in computer-assisted auditing techniques, is taken into account with the application of a competence-based approach, where particular competencies should be developed through a combination of formal teaching and practical training and experience. To start with, the prescribed requirements for the teaching and training of auditors were analysed and literature was studied to delimit the entry level competencies auditors should posses in computer-assisted auditing techniques. Thereafter research questionnaires were developed and sent to practitioners in auditing firms who are responsible for the practical training of trainee auditors, and to a selection of trainee auditors who qualified to write Part II of the Qualifying Examination (Auditing specialisation) of the Public Accountants' and Auditors' Board. The responses received from practitioners and trainee auditors were analysed and subsequent findings were made on the nature, extent and effectiveness of the practical training and experience trainee auditors obtain during the practical training period (articles of clerkship) in computer-assisted auditing planning techniques, computer-assisted auditing techniques to obtain audit evidence and computer-assisted auditing tools. The findings were related to the application of a competence-based approach and the conclusion was reached that the practical training and experience that trainee auditors obtain during the period of practical training (articles of clerkship) in computer-assisted auditing techniques is not sufficiently taken into account in the application of a competence-based approach. In conclusion recommendations were made for an improved application of a competence-based approach based on the findings of the practical training and experience trainee auditors obtain in computer-assisted auditing techniques during the practical training period. These recommendations have particular implications for practitioners responsible for the practical training of trainee auditors, academics responsible for formal teaching, and the Public Accountants' and Auditors' Board and South African Institute of Chartered Accountants jointly responsible for the Education Requirements and Practical Training Requirements of entry level auditors. / Auditing / D.Com

Financial scandals worldwide have led to an auditing profession crisis. Society has lost confidence in the profession because of a growing perception that it does not act in the public interest, but in its own interest only. The way in which the auditing profession is regulated may impact positively or negatively on the value of the audit function. Consequently there is danger that the profession may lose its very reason for existence. Conversely, the profession has an opportunity to re-invent itself, and by so doing, regain the trust of society. The South African auditing profession, as elsewhere, has begun to recognise this situation as an opportunity to introduce changes to the regulation of the profession. These regulations are the key to society’s willingness to trust the outcome of the audit process. While the current regulations are obviously flawed, it is believed that, once revised, society may regain confidence and trust in the profession and its services. To this end the Draft Auditing Profession Bill, 2004 was published in November 2004. In this thesis the profession’s regulations, including the Draft Auditing Profession Bill, 2004, are evaluated in terms of factors that are central to an effective and credible regulatory system. The burning issues involving the auditing profession are also identified in this study, and evaluated. In comparison with changes already made in other countries, it appears that those important regulatory system factors and the key public interest issues of credibility and trust are inadequately addressed by the proposed auditing profession regulations. The fundamental reasons for this failure are the proposed composition and financing of the regulator and associated bodies. Hence, in this study a normative framework for regulating the auditing profession in South Africa is proposed in an effort to regain society’s trust. / Thesis (DCom (Accounting Sciences))--University of Pretoria, 2007. / Auditing / unrestricted

Graduation theses treats of evolution of the legal regulations of auditing in the Czech republic from first regulation of Ministry of Finance no. 63/1989 Sb. to the draft law of auditors which results from Directive 2006/43/EC. Fundamental part of the theses is concentrated on the law no. 254/2000 Sb., of auditors and of change of law no. 165/1998 Sb., as amended by the subsequent acts, and on the act draw of auditors which implements the requirements of the Directive above mentioned to the Czech legal order (the theses is based on the text which was put to Chamber of Deputies of the Parliament of the Czech republic as a parliament print no. 517/0). However previous Czech and actual European legal regulations of auditing is also mentioned.

Covid-19 pandemin har orsakat dödsfall, risk för människors hälsa och en världsekonomisk nedgång vilket resulterade i att restriktioner infördes för att minska smittspridningen. Restriktioner i form av fysisk distansering till följd av Covid-19 pandemin har skapat både utmaningar och möjligheter för olika branscher i världen. Ett flertal arbetsplatser fick drastiskt omstrukturera arbetssätt och införa ett distansarbete. Revisionsbranschen har inte varit ett undantag utan genomfört en drastisk implementering av distansarbete. Utvecklingen av digitala verktyg inom revisionsbranschen har varit ett pågående arbete under en längre period. Detta för att realisera ett ökat distansanpassat arbetssätt i framtiden, vilket påskyndades till följd av Covid-19. Trots teknologiska förberedelser har det inneburit utmaningar samt givit möjligheter inom revisionsbranschen vilket kan medföra inverkan på revisionskvalitén. Eftersom detta område i skrivande stund är outforskat, är syftet med studien att bidra med kunskap om hur distansarbetet under Covid-19 har inneburit utmaningar och möjligheter inom revisionsbranschen samt skapa förståelse om balansen mellan revisionskvalitet och oberoende och objektivitet.    Studien berör revisionsprocessens förändrade arbetssätt till följd av ökat distansarbete och dess inverkan på revisionskvaliténs slutprodukt. I studien presenteras centrala faktorer vilka vid införandet av distansarbete kan inverka på revisionskvaliteten. Via tio kvalitativa intervjuer med revisionsmedarbetare, vilka har varierande erfarenhet, har individuella-, organisatoriska-, privata- och teknologiska faktorer inom distansarbete ansetts betydelsefulla. Vidare har även input-, process- och output faktorer inom revisionskvalitén samt revisionsprocessens samtliga faser ansetts betydelsefulla. Ytterligare kvalitativ datainsamling har skett genom textanalys av tio företags revisionsberättelser för år 2019, 2020, samt 2021. Majoriteten av respondenterna i studien tillhör Big Four-byråer resterande fyra respondenter tillhör medelstora revisionsbyråer. Samtliga av respondenterna arbetar aktivt med K3-regelverket och är lokaliserade på kontor i olika delar av Sverige.    Studien bidrar med kunskap om vilka möjligheter och utmaningar revisionsbranschen har mött i samband med den drastiska implementeringen av distansarbete. Vidare utfördes en analys angående om revisionskvalitén har påverkats på grund av de identifierade utmaningarna och möjligheterna. Tillvägagångssättet för studien var att undersöka distansarbetets inverkan på revisionskvalitetens dimensioner bestående av input-, process-, och outputfaktorer. Studien visade på att distansarbetet har medfört kommunikativa utmaningar och svårigheter att upprätthålla kunskapsutveckling. Distansarbetet har även medfört möjligheter för ökad effektivitet. En slutsats av studien var att distansarbetet inte påverkat den slutliga produktens kvalité och därmed uppfattades ingen inverkan på revisionskvaliteten i dagsläget. Vidare uppmärksammas gränsdragningen mellan revisorers oberoende och objektivitet i förhållande till kundrelationerna. Studien uppmärksammar även att om implementering av hybrid-arbetssätt fortsätter bör revisionsbranschen se över kunskapsförsörjningen hos revisionsmedarbetare. / The Covid-19 pandemic causes death, risk to human health and a world economic downturn. The pandemic led to the establishment of restrictions to reduce the spread of the infection and physical distancing have both brought challenges and opportunities for various industries in the world. Several workplaces had to drastically restructure their working methods and implement teleworking. The auditing industry has not been an exception to this, and a drastic implementation of teleworking took place in the line of business. The development of digital tools in the auditing industry has been an ongoing work for a long period. This is to implement an extended teleworking method in the future, which has been accelerated as a result of Covid-19. Despite technological preparations, it has posed challenges and provided opportunities in the auditing industry, which can have an impact on auditing quality. Based on this unexplored field at the time of writing, the purpose of this study is to contribute knowledge about how teleworking during Covid-19 has entailed challenges and opportunities in the auditing industry and to create an understanding of the balance between auditing quality and independence and objectivity   The study refers to the changed working methods regarding the audit process as a result of increased telework and its impact on the audit quality in the final product. The study presents key factors which, when introducing telework, can affect the quality of auditing. Through ten qualitative interviews with audit staff, with varying experience, has individual, organizational, private and technological factors in teleworking been considered significant. Furthermore, input, process and output factors within the audit quality and all phases of the audit process have also been considered significant. Further, qualitative data collection has taken place through text analysis of ten companies' audit reports for the years 2019, 2020, and 2021. The majority of the respondents in the study belong to Big Four-agencies, the remaining four respondents belong to medium-sized audit firms. All the respondents work actively with the K3 regulations and are located in offices in different parts of Sweden.    The study contributes with knowledge of the opportunities and challenges the auditing industry has faced in connection with the drastic implementation of teleworking. Furthermore, an analysis was performed regarding whether the audit quality has been affected due to the identified challenges and opportunities. The approach for the study was to investigate the impact of telework on the dimensions of audit quality consisting of input, process, and output factors. The study showed that teleworking has led to communicative challenges and challenges in maintaining knowledge development. The telework has also led to opportunities for increased efficiency. One conclusion of the study was that the telework did not affect the quality of the final product and thus no impact on the audit quality was perceived at present. Furthermore, attention is drawn to the demarcation between auditors' independence and objectivity in relation to customer relationships. The study also draws attention to the fact that if the implementation of hybrid working methods continues, the auditing industry should review the supply of knowledge among audit staff.